The South Dakota Community Property Trust is a powerful new legislation in South Dakota for trust planners. South Dakota is one of a select few states that offers a Community Property Trust. A Community Property Trust comes into effect when a spouse passes away, or if a couple gets divorced. In this event the property/assets owned during the marriage must be distributed. In nine states, ownership is determined according to community property laws, which requires an initial classification as either community or separate.
In South Dakota, after the death of the first spouse there is a 100 percent step-up in basis at date of death, which allows settlors in South Dakota to avoid federal capital gains taxation of marital/trust assets when sold. Community Property Trusts have major tax implications as they have the potential to result in large amounts of federal and state tax savings.
Contact us to discuss this topic further at info@bridgefordtrust.com or by calling (605) 224-9189. You can also visit our website at www.bridgefordtrust.com.
